China's CSI 300 Sinks Into Bear Market After Record 10-Week Rout

China's CSI 300 Sinks Into Bear Market After Record 10-Week Rout

CSI 300 Enters Bear Territory With Longest Losing Streak on Record

China's benchmark CSI 300 index officially entered bear-market territory on Thursday, October 22, 2026. According to LSEG data cited by CNBC, the index has fallen about 20% from its June peak and declined for 10 consecutive weeks — the longest losing streak in the history of the country's main benchmarks, per Barchart data. The CSI 300 stood at 4,060.19 at Thursday's morning break, down 13.94% from its January 1 level, and fell roughly 1.8% on the day to a 15-month low. The Shanghai Composite Index similarly slipped 1.5%.

No Dedicated Statement From Index Provider, Rates on Hold

As of publication, the China Securities Index Company had issued no separate statement on the selloff; the figures come from LSEG, Barchart and media including CNBC and Bloomberg. On policy, the one-year Loan Prime Rate remains frozen at 3.0% and the five-year at 3.5% for the 17th consecutive month, signaling continued caution from monetary authorities.

AI Rout, Fading Stimulus Hopes and Weak Earnings Drag It Down

Bloomberg linked the drop to fading stimulus hopes, weak corporate earnings and worries over the global artificial-intelligence trade. Bloomberg Intelligence analysts Jason Liao and Marvin Chen wrote that the global AI-hardware selloff, spanning the Nasdaq and Korea, hit China A-shares hardest after foreign investors crowded into the sector in the second quarter. Tech leaders led the decline, with AI-linked stocks such as Z.AI plunging. Underlying structural challenges — excess industrial capacity, overinvestment, weak domestic consumption and the prolonged property-market slowdown — continue to weigh on sentiment.

Foreign Investors Flee; Hong Kong Tech and Retail Take the Hit

Foreign investors pulled an estimated 90 billion yuan (US$13.5 billion, or $17.3 billion) out of mainland equities through the Hong Kong trading link in the third quarter — the biggest outflow in a year, reversing more than half of April-to-June inflows. Hong Kong markets also slid: the Hang Seng lost 2.9% by midday and its technology index plunged 4.6%. Shaun Rein, managing director at China Market Research Group, told CNBC he expects further selling pressure as geopolitical uncertainty, AI-bubble concerns and deteriorating consumer confidence weigh on sentiment, with China's large retail-investor base likely amplifying volatility.

Signs of State Buying as Markets Watch for Policy

Bloomberg Intelligence analysts said state-backed buyers may need to accelerate purchases, though buying alone may not deliver a sustained recovery. Central Huijin raised $231 billion through ETF sales in the first half and has redeployed $43 billion since purchases resumed in July. Markets are looking for bolder stimulus, but the LPR's long freeze suggests policymakers remain measured. Rein expects selling pressure to persist.